Paragraph 1 F1

This Part of this Schedule applies if the following conditions are satisfied.

Condition 1 is that—

Condition 2 is that all of the member’s outstanding syndicate capacity is disposed of by the member under a conversion arrangement to a successor company (“the syndicate capacity disposal”) with effect from the beginning of the underwriting year next following the member’s last underwriting year.

Condition 3 is that, immediately before the syndicate capacity disposal,—

Condition 4 is that the syndicate capacity disposal is made in consideration solely of the issue to the member of shares in the successor company.

Condition 5 is that the successor company starts to carry on its underwriting business in the underwriting year F2... next following the member’s last underwriting year.

In this paragraph “the member’s last underwriting year”, in relation to a member who gives notice of his resignation from membership of Lloyd's, means the underwriting year during which, or at the end of which, he ceases to be an underwriting member and becomes a non-underwriting member in accordance with the rules or practice of Lloyd's.

In this paragraph “outstanding syndicate capacity”, in relation to a member, means the syndicate capacity of the member other than any which—